An Italian judge has dismissed sexual assault charges against Oscar-winning writer Paul Haggis, three years after he was arrested.

Haggis is known for writing and directing the Oscar-winning 2004 film Crash, as well as co-writing James Bond films Casino Royale and Quantum of Solace.

He was arrested in Brindisi in 2022 after being accused of rape by a British woman who had attended a film festival with him.

"A false allegation is a terrible thing," he told reporters in the city on Thursday. "It was very hard on my family, and myself as well, I guess. I felt very bad for my family and now, really I feel grateful."

He added: "I feel very grateful to the judiciary, the judge, and for my avvocato [lawyer] for his incredible strength and for his ability to see the truth and lay it out simply and understandably so that everyone can see."

Haggis's lawyers told the Reuters news agency that a court judge had ruled no sexual act took place without consent.

"For Mr Haggis, it is the end of a nightmare that has unfairly shattered the career of a film genius and 2006 Oscar winner," they said in a statement.

The Canadian film-maker, 72, added that he had applied for residency in Italy and planned to live there permanently.

In a separate case in 2022, Haggis was ordered to pay $10m in damages after being found liable in a civil trial for raping a woman. He denied the allegations and never faced any criminal charges in the case.